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ull Call Spreads: A stocks current price is $49. A call option with an exercise price of $70 can be bought or sold today for
- ull Call Spreads:
A stocks current price is $49.
A call option with an exercise price of $70 can be bought or sold today for a price of $12.
A call option with an exercise price of $90 can be bought or sold today for a price of $4.
Draw the number line for the bull call spread.
What will be the final net gain, or loss, if one undertakes the bull call spread today, and on the exercise date that the stocks price has become.: (Show all work.)
A. $55. B. $69. C. $75. D. $ 89. E. $100.
Special Bonus: 5 points extra credit for solving the break even final stock price.
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